https://www.taxtmi.com/caselaws?id=61269 Payment made to prevent cancellation or suspension of an excise licence was treated as a business expense because it was incurred to preserve the assessee's profit-earning apparatus and continue trade. The analysis distinguished a punitive payment for breach of law from a payment made to keep the business alive; only the latter was regarded as an ordinary incident of business. On that basis, the expenditure was held to satisfy the test of being wholly and exclusively laid out for business purposes and was deductible in computing total income. en-us Tue, 02 Aug 1983 00:00:00 +0530 Wed, 12 Jan 2011 10:27:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61269 Payment made to prevent cancellation or suspension of an excise licence was treated as a business expense because it was incurred to preserve the assessee's profit-earning apparatus and continue trade. The analysis distinguished a punitive payment for breach of law from a payment made to keep the business alive; only the latter was regarded as an ordinary incident of business. On that basis, the expenditure was held to satisfy the test of being wholly and exclusively laid out for business purposes and was deductible in computing total income. Case-Laws Income Tax Tue, 02 Aug 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61269